One Heritage Group plc: Trading Update Jan2023
One Heritage Group PLC (LSE: OHG), the UK-based residential developer focused on the North of England, is providing an update on the progress of projects, changes to its senior leadership team, extension to shareholder loan facility and acquisition of Seaton House, Stockport.
One Heritage continues to experience industry-wide challenges such as mounting cost pressures in respect of building materials and also sub-contractor labour shortages. Further to the announcement of an impairment of two of its development projects Bank Street, Sheffield and St Petersgate, Stockport, published in the results for the full year ending 30 June 2022, it is anticipated there will be an increase in the value of impairment for both and a further development, Oscar House, Manchester, is likely to be impaired. The delays across the portfolio resulting in increased debt costs and construction related cost increases have been the prominent factors in these impairments and are expected to be in the region £0.75m-£1.25m. Further details will be provided in the published interim results for the six months to 31 December 2022, in March 2023.
Mr Martin Crews has tendered his resignation as Development Director from the Group and is expected to leave the business in March 2023. Mr Crews was hired in September 2020 and led the team responsible for the delivery of the Group’s development projects. The Group would like to wish Mr Crews well for the future.
The Group is pleased to announce the appointment of Mr Paul Westhead as Interim Development Director to oversee the delivery of the Group’s Development Projects. Mr Westhead brings a wealth of residential property experience, financial analysis, risk management and an in-depth understanding of the property and regeneration market place. Mr Westhead will also assist in the selection process for a full-time replacement for Mr Crews.
The Group is also announcing that its related party shareholder loan facility, with One Heritage Property Development Limited, has been increased from £9.5 million to £11.0 million with the £2.0m increase repayable by 30 June 2023. The extension provides further working capital whilst the Group completes its Oscar House, St Petersgate and Bank Street developments. The facility is expected to be repaid from March 2023 as both the developments themselves and apartment sales complete. The Group would like to express its gratitude to its majority shareholder for the continued support in providing this facility.
Further to the announcement on 11 January 2022, the Group is pleased to announce that it has completed the acquisition of Seaton House, Wellington Street, Stockport for £675,000 following a 12-month delayed completion. A planning application for 34 apartments is awaiting determination. The project is anticipated to produce net revenue of £5.6 million. Construction will start without delay once planning permission has been granted.
Jason Upton, Chief Executive Officer of OHG plc commented: “We are looking forward to 3 development projects completing in the first half of the year and to progress the projects in our pipeline, namely Victoria Road, Seaton House and Churchgate. We are delighted to welcome Paul Westhead to our development team to assist us in completing our outstanding projects and appraising the new opportunities we are currently considering.”
Chief Executive Officer
Chief Financial Officer
Hybridan LLP (Financial Adviser and Broker)
Claire Louise Noyce
Tel: +44 (0)203 764 2341